Virgin Media release Q1 2010 Results
Virgin Media have today released their quarterly results for the first quarter 2010 covering 1st January to 31st March. Total revenue for the company rose by 2.9% to £963 million. Mobile contract subscribers now exceeds 1 million following 81,200 new subscribers in the quarter. Across the customer base they have 11% quad-play penetration (customers taking TV, landline phone, mobile phone and broadband) and 61.9% triple-play (customers taking TV, landline phone and broadband). The company are reporting a total of 4.17 million broadband customers, up from 4.10 million in the last quarter, a net increase of 72,300 customers. The company are reporting a historic low churn rate of just 1.1% and the average revenue per user for cable customers has increased by 5.3% year-on-year.
Subscribers on 20Mbps or 50Mbps broadband packages rose by 46% compared with the last quarter, representing a total of 16% of all cable broadband customers. Subscribers on the 50Mbps package rose by 40% to 57,900 (up from 41,400). The company still plan to roll out 100Mbps broadband by the end of the year and are continuing trials of 200Mbps downstream and 20Mbps upstream speeds.
"This quarter, we added cable customers at our fastest ever rate. A combination of higher gross additions, low churn and increased ARPU enabled us to deliver year-on-year cable revenue growth for the fourth consecutive quarter. This has driven the growth in total revenue and, with solid cost control, a double digit year-on-year increase in OCF for the second successive quarter.
We are developing our services to exploit our natural network advantage, both now and in the future. More customers than ever before are choosing faster broadband and every day millions of our customers are enjoying the benefits of the video-on-demand revolution we are leading. On average our customers pressed "play" more than two million times a day, every day in the last three months. The latest addition to our set-top box range, the V HD Box, will also enable more Virgin Media customers to enjoy HD television without an on-going monthly fee.
Finally, we have completed the last step of the refinancing of our debt, leaving us with a long term "fit for purpose" capital structure that supports our ambitions to lead the market as the digital provider of choice."Neil Berkett, (CEO) Virgin Media